Zaggle invests in Mobileware to broaden payment solutions to businesses

Zaggle Prepaid Ocean Services Limited has acquired a 38.34% stake in Mobileware Technologies for ₹22.85 crore, building on its September investment of ₹15.60 crore for a 26% stake and ₹7.25 crore for a 12.34% stake from Mobileware's promoters. 

This investment will enable Zaggle to expand its payment service offerings by leveraging Mobileware's infrastructure and co-developing solutions for lending, credit, and card management, the company said in a statement.

Last year, Zaggle invested ₹15.60 crore to acquire a 26% ownership stake on a post-issue and fully diluted basis, and it also acquired a 12.34% stake, from the promoters of Mobileware for ₹7.25 crore. The 26% ownership stake represents a portion of the post-closing issued and paid-up capital of the company, on a fully diluted basis, it added.

“This strategic investment will enable us to co-develop advanced solutions tailored to our diverse customer base. Mobileware’s proven expertise in building robust payment infrastructures, particularly in Unified Payments Interface (UPI) and other National Payments Corporation of India (NPCI)-certified solutions, perfectly aligns with our vision of delivering seamless, integrated payment experiences,” Raj P. Narayanam, Founder & Executive Chairman, Zaggle said.

“Zaggle remains committed to enhancing its product portfolio through targeted acquisitions over the next financial year, creating significant value for all our stakeholders,” he added.

The acquisition highlights Zaggle’s commitment to strengthen its position in the Spend Management sector and partnership with Mobileware as part of its ongoing strategic growth initiatives. The move would also help Zaggle solidify its position in the Software-as-a-Service (SaaS) FinTech sector, allowing it to deliver greater value and foster growth for its clientele.

Founded by entrepreneurs Amitabh Kanekar and Satyajit Kanekar, Mobileware Technologies is a digital payments infrastructure company that offers a suite of products to financial institutions.

“This collaboration has empowered us to enhance our service capabilities, optimise digital payment solutions, and expand our reach to a broader and more diverse customer base. By harnessing this synergy, we are not only addressing the evolving needs of various sectors but also setting new standards for efficiency, security, and customer-centric innovation,” said Avinash Godkhindi, Managing Director and CEO, of Zaggle.

"This investment marks a pivotal milestone in our journey to transform the digital payments infrastructure ecosystem," said Satyajit Kanekar, Co-founder of Mobileware Technologies, adding that this collaboration will help us invest in technological innovation and product enhancements to provide efficiency, scalability, and security, ensuring a superior payments experience for our customers.

Zaggle, founded in 2011, provides spend management solutions including prepaid cards and SaaS-based expense management tools. The company aims to leverage Mobileware's expertise in digital payments infrastructure, including NPCI-certified solutions and its API banking platform, TransXT.

Zaggle recently reported a 29.6% rise in consolidated net profit to ₹19.7 crore for the quarter ended December 2024 and raised ₹595 crore through a Qualified Institutional Placement for strategic acquisitions and a $1 billion revenue target.